Global Stocks Rise Despite US Government Shutdown
Global stocks have seen an upward trend recently, despite the ongoing shutdown of the US government. The rise has been observed across continents, from Asia to Europe, and even in the US market.
Technology Stocks: A Major Contributor
One of the main factors contributing to this surge is the rise in technology shares. Boosted by an anticipated increase in computer chip demand, tech firms are experiencing a boom. This is largely due to an agreement between tech companies in South Korea and a leading AI research lab, which promises to boost chip usage.
Despite this, the US market showed mixed results. The S&P 500 saw a marginal rise of around 0.2%, while the Dow Jones Industrial Average dipped slightly below 0.1%.
European Markets See Positive Growth
In Europe, Germany's main stock index saw an impressive increase of 1.3%, pushing the total to 24,435.24. Similarly, France's main index climbed approximately 1.2% to reach 8,058.80. The UK's main index showed a less significant rise, edging up just below 0.1% to 9,452.81.
Asian Markets Also in Green
In Asia, South Korea's main stock index closed with a robust 2.7% increase, reaching 3,549.21. This rise came a day after two major South Korean tech companies announced their collaboration with a prominent AI research lab to supply memory chips for its data hubs.
Shares of these South Korean tech giants also saw significant growth, with one increasing by 3.5% and the other surging by a whopping 9.9%. In addition, shares of a Taiwan-based chip manufacturer climbed by 3%, contributing to a 1.5% increase in the country's main stock index.
Japan's major stock index also rose by 0.9% to 44,936.73, driven largely by the performance of tech stocks. In Hong Kong, the main stock index rose by 1.6% to 27,287.12. Chinese markets, however, remained closed due to a national holiday.
In Australia, the main stock index rose 1.1% to 8,945.90, bolstered by the performance of gold mining stocks. In India, the primary stock index saw a 0.9% increase after the country's central bank decided to maintain its key interest rate.
US Market Continues to Hit Record Highs
Even with the government shutdown, the US market continued to break records. The S&P 500 climbed 0.3% to reach 6,711.20, surpassing its previous all-time high. The Dow Jones Industrial Average also added 0.1%, setting a new record at 46,441.10. The tech-focused Nasdaq composite rose 0.4% to 22,755.16.
However, the job market in the US showed signs of strain. A recent survey indicated that more jobs were lost than gained outside the government sector in September, with the Midwest region being particularly affected. This trend is causing uncertainty and concern among investors and traders.
Despite these concerns, the hope is that the job market will slow down just enough to persuade the Federal Reserve to continue cutting interest rates, but not slow enough to trigger a recession. This delicate balance is critical for the health of the economy and the continued growth of the stock market.
Other Market Updates
In other market updates, the prices of US crude oil and Brent crude, the international standard, both fell slightly by 11 cents, settling at $61.67 and $65.24 per barrel respectively. Currency markets also saw movement, with the US dollar falling against the Japanese yen and the euro rising against the dollar.
The price of gold, usually seen as a safe haven for investments during times of uncertainty, has been fluctuating after reaching new highs. It has experienced a significant rally in the past year, gaining over 37%.